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Amazon.com, Inc. (AMZN) to Start Handing Out $70M in Refunds for Kids’ In-App Purchases

The refunds are the result of AMZN ending its legal battle with the FTC

By William White, InvestorPlace Writer

http://bit.ly/2naUsHu

Amazon.com, Inc. (NASDAQ:AMZN) is going to start handing out more than $70 million in refunds for in-app purchases made by children.

Amazon.com, Inc. (AMZN) to Start Handing Out $70M in Refunds for Kids' In-App Purchases
Source: Amazon

The decision was announced by the Federal Trade Commission (FTC) as it brings an end to its drawn out legal battle with Amazon.com, Inc. over the matter. This means that many parents with kids that spent money for in-app purchases should be able to get a refund.

According to the FTC, a refund program for in-app purchases made through Amazon.com, Inc. by kids should be announced in the near future. The program will potentially allow parents that had kids making unauthorized purchases from November 2011 to May 2016 to get a refund.

“This case demonstrates what should be a bedrock principle for all companies — you must get customers’ consent before you charge them,” Thomas Pahl, Director of the FTC’s Bureau of Consumer Protection, said in a statement. “Consumers affected by Amazon’s practices can now be compensated for charges they didn’t expect or authorize.”

The whole case surrounding kids making unauthorized in-app purchases for apps offered by Amazon.com, Inc. came about in April 2016. A federal court found that the company hadn’t gotten proper permission from parents for the purchases. This resulted in a series of appeals from the FTC and AMZN, which are only now coming to an end with this new refund agreement.

Amazon.com, Inc. isn’t the only company that has been hit with demands for refunds over in-app purchases made by children. Both Alphabet Inc (NASDAQ:GOOG,GOOGL) and Apple Inc.(NASDAQ:AAPL) have faced similar lawsuits concerning the issue.

AMZN stock was up slightly as on Wednesday morning.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/amazon-com-inc-amzn-refunds-ftc/.

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